Currently a lot of newbies are interested in copy trading.
Advantages:
Ability to repeat after a professional. I think this is the most significant advantage of copy trading. What could be better than watching an expert in his field do his job. I have seen many communities where followers asked for such an option.
Low effort minimal start in the crypto market. Copy trading platforms or exchanges are designed to be user-friendly, making it convenient for individuals to start trading with minimal effort and funds.
Diversification of risks. No one ever forbids trading your own and copy trading. Some exchanges allow creating sub-accounts, one for hodling, copy trading and trading.
Disadvantages:
Risk of losses due to poor decisions or even malicious purposes. Sadly, but true that copy trading does not always guarantee profits. Followers are exposed to the same market risks as the traders they copy. There is a one-way trust relationship, where you allow someone to manage your assets.
Overreliance on trader/bot. Even if you see and copy the trades, you may not see the analysis and the motivations behind them. This can also hinder the development of personal investment skills and decision making.
Dependence on platform/exchange reliability. The effectiveness of copy trading relies heavily on the reliability and performance of the platform. Technical issues or downtime could potentially disrupt trading activity and affect results.
Copy trading can indeed be an attractive option for those who wish to enter the financial markets with less effort and time. However, it's crucial to weigh the pros and cons for yourself and see if it fits your investment goals and risk tolerance.